Give £10,000 to all 25-year-olds to ease strain between generations - report
2 min read
The Government should hand £10,000 to all 25-year-olds to help them onto the housing ladder and reduce unfairness between the generations, powerful public figures have said.
A new report by the Intergenerational Commission - set up by left-leaning think tank the Resolution Foundation - said the ‘citizens inheritance’ payment would boost aspirations.
It said the cash - funded by replacing inheritance tax with a ‘lifetime receipts tax’ - should be restricted for use on a housing deposit or to start up a new business.
The report also proposed a new NHS levy, a major shake-up of social care funding and radical reform of the housing market including indeterminate rental tenancies.
It called on the state to step in and ease the “strain” between the generations currently being plugged by parents funding housing deposits for their kids and the rise in adults caring for elderly relatives.
The Commission includes Tory peer Lord Willetts, Confederation of British Industry director general Carolyn Fairbairn and TUC general secretary Frances O’Grady.
Lord Willetts said the ideas in the report could help “build a better and unified Britain”.
"Many people no longer believe that Britain is delivering on its obligations to young and old,” he argued. "But our Commission shows how Britain can rise to this challenge.”
The report said applying National Insurance Contributions to pensioner earnings and the incomes of wealthier pensioners could fund a £2.3bn NHS boost.
It also said replacing council tax with a “progressive property tax” - including deferred payments for those with property but low incomes - could help fund another £2.3bn for social care.
Elsewhere, it proposed halving stamp duty for many first time buyers and movers, as well as three-year “rent stabilisation” and the right for zero-hours workers to demand regular contracts.
Ms O’Grady said the action plan would ease the “huge risks” shouldered by young workers and help people into “decent homes” while saving for a pension.
Ms Fairbairn said: “The idea that each generation should have a better life than the previous one is central to the pursuit of economic growth.
“The fact that it has broken down for young people should therefore concern us all.”
The report said the disposable incomes of 30-year-old millennials are no higher than the generation before them at that age - despite the economy growing by 14% over the last 15 years.
It said millennials were half as likely than the previous generation to own their own homes by the age of 30, and were missing out on big pay rises due to more frequent job changes.
The 35 recommendations make up the final report in a two-year project by the Intergenerational Commission.
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